Rubber advanced to the highest level in 11 weeks as a weakening Japanese currency made yen-based contracts more attractive and data yesterday added to signs the global economy is improving.
Rubber for delivery in January on the Tokyo Commodity Exchange rose as much as 1.5 percent to 269 yen a kilogram ($2,739 a metric ton), the highest level for a most-active contract since May 29. Futures traded at 266.6 yen at 10:54 a.m. and have lost 12 percent this year.
The yen was little changed at 98.28 per dollar after closing at a 1 1/2-week low yesterday. U.S. retail sales advanced for a fourth month, data showed yesterday, after other reports showing German investor confidence and Japanese machinery orders topped estimates and euro-area factory output expanded in June.
“Rubber was supported by the depreciation of yen against the dollar,” said Ryuta Imazeki, an analyst at Okachi & Co.
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Economists in separate Bloomberg polls estimate the number of people in the U.S. continuing to receive jobless benefits probably decreased by 18,000 to 3 million in the week ended Aug. 3, while first-time claims totaled 335,000 in the week ended Aug. 10 from 333,000 the previous week. The Labor Department releases its data tomorrow.
Rubber for delivery in January was little changed at 19,860 yuan ($3,244) a ton on the Shanghai Futures Exchange.
Thai rubber free-on-board gained for a fourth day yesterday, rising 1.3 percent to 80.50 baht ($2.57) a kilogram, according to the Rubber Research Institute of Thailand.
Source: Bloomberg
